“An investor, you can’t change a lot. We’ve been reticent anyway, a little nervous about the markets and the way they’ve run, and we’ve been sort of defensive in our positions. So, I haven’t done anything today to change any of that.”
The Canadian dollar dropped to 68.48 cents US, its lowest level since 2003, down from 69.04 cents US on Friday. It rebounded slightly after the Mexico news, but Zechner warned that the high number of short positions against the loonie could drive it even lower.
“It’s well below fair value if you use the old purchasing power parity or anything like that, but you know, when you get speculators and all of that, you get larger flows, they can overshoot to the downside as well as the upside,” he said.
US markets also saw steep losses but regained some ground after the news about Mexico.
The Dow Jones industrial average dropped 122.75 points to…
